HAS NFTS LOST ITS RELEVANCE?

Jamaica, my home

The interest of NFT has dropped signi�icantly. After hitting its peak in January 2022, the decline was seen in September 2022. For those holding on to hope, the global non-fungible token market size is estimated to reach over 211 US Billion by 2030. So, how will this in�luence the Jamaican community? If you are a smart investor, diversify. Consider stocks, bonds, real estate and precious metals to be included in your portfolio. Yes, you can add NFTs but with caution.

Don’t rule out the potential value of NFTs; just don’t hold your breath. NFTs are a unique digital asset that exists as a permanent record on a block chain. To be valuable, it has to have something unique about it. If you’re a NFT creator, don’t make things that are too similar. Create a variety of designs to prevent the market being cannibalized by a single theme; Afterall, NFT are not a class asset. This type of investment can acquire misinformation, which can cause the tokens to become inflated and volatile. This means the chance of losing some or all your money can be high.

However, many Jamaicans are entering this space. Iris Nevins is an art collector, who is dedicated to helping artists. While her original plans were to create a store online in which artists could sell their work, she changed her focus when she heard about nonfungible tokens, or NFTs. Believing that this technology would be a much better way to help artists, Nevins launched the NFT studio called Umba Daima and its “Black NFT Art” brand in February of 2021. The business brought in $140,000 in 10 months. Nevins views the business as a way to “rebalance power.”

Nevins admits that the NFT space is not perfect: the industry suffers from a lack of diversity. Most NFT marketplaces require artists to apply or be invited to participate, and some platforms do not invite or accept artists of color. She hopes that the industry will change over time, however, and adds that the markets will benefit from working with people like her. She is happy to see Black-owned NFT platforms grow and include more music, film, and dance NFTs in the market. Remember, not everything is for everyone. The NFT is not a place for the less adventurer but the entrepreneur can tap this niche to provide a source of wealth for your investment portfolio.